LS9

LS9, Inc. developed advanced renewable fuels and chemicals through synthetic biology, specifically engineering microorganisms to produce hydrocarbons. Its core technology involved a proprietary one-step fermentation process, allowing for the precise design of fuel characteristics such as chain length and saturation. This method yielded UltraClean Diesel, a product with superior performance attributes including a high cetane number, near-zero sulfur content, and no aromatics, distinguishing it from traditional petroleum and other biodiesels.

The company was founded in 2005 by David Berry, George Church, Chris Somerville, and Jay Keasling. Their foundational insight was to harness microbial metabolism to convert various feedstocks into valuable fuels and chemicals directly, bypassing complex and energy-intensive conventional refining processes. This approach sought to create economically viable and environmentally sound alternatives to fossil fuels by engineering organisms for efficient, single-step production.

LS9 aimed to serve the vast commercial diesel market with its high-quality, sustainable fuel offerings. Beyond fuels, its vision extended to developing a broader portfolio of specialty chemicals for industries like personal care and agriculture, leveraging its versatile microbial production platform. The company's long-term objective was to provide cost-effective, environmentally superior bio-based products, focusing on diverse, non-food-competing feedstocks and efficient manufacturing.

# LS9: Industrial Biotechnology Pioneer

High-Level Overview

LS9 was an industrial biotechnology company, not a traditional technology firm, that developed genetically modified organisms to produce renewable chemicals and fuels[1]. Founded in 2005, the company focused on using transgenic E. coli bacteria to create sustainable alternatives to petroleum-derived chemicals for large, diverse markets[2]. Rather than building software or hardware, LS9's core product was a biological manufacturing platform capable of producing over 1,000 unique products—ranging from drop-in diesel fuels and biodiesel to detergents, flavors, and fragrances[4].

The company operated at the intersection of synthetic biology and industrial chemistry, solving the problem of petroleum dependency by leveraging fermentation technology. LS9 raised $81 million in venture funding during its independent operation[2], demonstrating significant investor confidence in its renewable energy and chemicals approach. The company achieved notable technical milestones, including successful batch fermentation runs at 135,000 liters at its demonstration facility in Okeechobee, Florida, and received EPA registration for its UltraClean Diesel™ product in 2010[1].

Origin Story

LS9 launched in 2005 as part of the "original wave of synthetic biology companies"[4], emerging during a period of growing interest in biotechnology solutions for energy and sustainability challenges. The company secured strategic partnerships early on, including a notable collaboration with Procter & Gamble in 2009 to develop sustainable chemicals[1]. By 2010, LS9 had expanded its operations to include a manufacturing site in Florida for renewable petroleum production[1].

The company's trajectory reflected both the promise and challenges of early synthetic biology ventures. Despite technical breakthroughs and regulatory approvals, LS9 faced cash constraints that eventually led to its acquisition. In 2014, Renewable Energy Group acquired LS9 for up to $61.5 million in cash and stock[4], transforming the independent startup into REG Life Sciences, a subsidiary of the nation's largest biodiesel producer.

Core Differentiators

• Proprietary fermentation platform: LS9's ability to genetically engineer E. coli to synthesize diverse molecules gave it a flexible manufacturing approach capable of producing over 1,000 different products from a single biological platform[4].

• Regulatory validation: The company achieved EPA registration for UltraClean Diesel™, demonstrating that its bioengineered products could meet stringent environmental and performance standards[1].

• Scalable production capability: LS9 demonstrated large-scale fermentation capacity (135,000-liter batches), bridging the gap between laboratory research and commercial manufacturing[4].

• Strategic positioning: Under Renewable Energy Group's ownership, LS9 gained access to approximately $1 million per month in R&D funding and a nationwide logistical network for feedstock, nutrients, and product distribution[4].

Role in the Broader Tech Landscape

LS9 represented an early bet on synthetic biology as an industrial solution during the 2000s, when the field was still nascent and largely confined to academic research. The company rode the wave of growing climate consciousness and petroleum price volatility, positioning renewable fuels and chemicals as economically viable alternatives. Its partnerships with major corporations like Procter & Gamble signaled that industrial biotechnology could address real commercial needs beyond energy production.

The company's acquisition by Renewable Energy Group reflected a broader trend: venture-backed synthetic biology startups often required integration with established industrial infrastructure to achieve commercial scale. LS9's transition from independent startup to subsidiary demonstrated that biotechnology innovation alone was insufficient without manufacturing expertise, distribution networks, and patient capital—resources that traditional energy companies possessed.

Quick Take & Future Outlook

LS9's story illustrates both the potential and the practical constraints of synthetic biology commercialization. While the company developed genuinely innovative technology and achieved technical milestones that validated its approach, it ultimately required acquisition by an established player to reach commercial viability. Under REG Life Sciences, the platform continues to operate with sustained funding and infrastructure support, suggesting that the long-term value lies not in LS9 as an independent entity, but in its technology becoming embedded within larger industrial operations.

The broader lesson: transformative biotech innovations often require patient capital, industrial partnerships, and integration with existing supply chains to move from laboratory success to market impact. LS9's trajectory shaped how subsequent synthetic biology companies approach commercialization, emphasizing the importance of strategic partnerships and realistic pathways to scale.